Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Outstanding Derivative Positions

The following table summarizes the fair value of outstanding cross-currency swaps as of June 30, 2026 and

December 31, 2025 (dollars in millions):


	Derivative Assets			Derivative Liabilities
	Balance Sheet Line Item	Fair Value		Balance Sheet Line Item	Fair Value
	Balance Sheet Line Item	June 30, 2026	December 31, 2025	Balance Sheet Line Item	June 30, 2026	December 31, 2025
Derivatives designated as hedging instruments (1)

Fair Value Hedge	Other current assets	$3	$2	Other current liabilities	$—	$1
Fair Value Hedge	Other assets	—	—	Other liabilities	40	51
Subtotal		3	2		40	52

Net Investment Hedge	Other current assets	76	50	Other current liabilities	—	—
Net Investment Hedge	Other assets	20	11	Other liabilities	303	240
Subtotal		96	61		303	240

Total Derivatives designated as Hedging		$99	$63		$343	$292

________________________________________________________________________________________________________________________________________

(1)As of June 30, 2026 and December 31, 2025, the gross notional amount of currency swaps designated as fair value hedges was $453 million and

$473 million, respectively; and the gross notional amount of currency swaps designated as net investment hedges was $5.5 billion and $3.9 billion,

respectively. The notional amounts of our cross-currency swaps have been translated to U.S. Dollars at the foreign currency rates in effect at June 30,

2026, and December 31, 2025, respectively.

Schedule of Impact of the Outstanding Derivatives in Accumulated Other Comprehensive Loss

The following table summarizes the gains and losses recognized within AOCL and net income related to the cross-

currency swap contracts designated as net investment hedges for the three and six months ended June 30, 2026 and 2025

(dollars in millions):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Derivative instruments designated as net investment hedges:
Gains (losses) recognized in AOCL on cross-currency swaps related to changes included in the assessment of hedge effectiveness	$64	$(88)	$87	$(134)
Gains (losses) recognized in AOCL on cross-currency swaps related to changes excluded from the assessment of hedge effectiveness	13	(215)	(134)	(174)
Total gains (losses) recognized in AOCL on cross-currency swaps	$77	$(303)	$(47)	$(308)
Net gains recognized in income (amount excluded from effectiveness testing):
Interest income	$22	$13	$36	$18